Friday, September 26, 2008

Speculator? Oil Firm? Theories on Crude Spike

From the Wall Street Journal:

As theories swirl around Monday's unprecedented jump in oil futures, U.S. government officials suggested that a financial trader was responsible, though market participants suspect an oil producer might have been caught in dire need of extra barrels.

Before the contract expired at the close of trade Monday, crude for October delivery surged more than $25 to $130 a barrel on the New York Mercantile Exchange, stunning traders and prompting an inquiry from the Commodity Futures Trading Commission, which has subpoenaed traders.

The contract settled $16.37 higher at $120.92 a barrel. (Wednesday, Nymex crude for November delivery fell 88 cents a barrel, or 0.8% to $105.73.)

But who powered the surge, or was burned by it, remains a mystery....MORE